Investment giant, Bank of India Mutual Fund, unveils a new venture: the Mid Cap Equity investment strategy
Bank of India Launches Mid Cap Fund for Long-Term Growth
The Bank of India has entered the mid-cap equity market with the launch of its Bank of India Mid Cap Fund on July 31, 2025. This new fund, managed by Bank of India Investment Managers Private Limited (BOIIM), aims to generate long-term capital appreciation by investing at least 65% of its assets in equity and equity-related instruments of mid-cap companies.
The investment strategy of the Bank of India Mid Cap Fund focuses on a diversified portfolio of mid-cap equities, potentially including equity derivatives, to balance risk and growth. While the exact sector allocations for the mid-cap fund are not explicitly mentioned, the related Bank of India Large & Mid Cap Fund (which includes both large and mid caps) focuses on sectors such as Financial Services, Basic Materials, Consumer Cyclical, Industrial, Technology, Health, Energy, Communication, Utilities, Consumer Defensive, and Real Estate. Top holdings in the combined fund include major companies like HDFC Bank, Reliance Industries, ICICI Lombard, and Larsen & Toubro, indicating a diversified sectoral approach with a tilt toward financials, consumer, and industrials.
As the Bank of India Mid Cap Fund is relatively new, precise historical returns for this fund are not yet available. However, the related Bank of India Large & Mid Cap Fund has delivered a compounded annual growth rate (CAGR) of 14.55% since inception, with recent 3-year and 5-year returns of about 20.31% and 22.88% respectively, highlighting the growth potential in this investment space.
Alok Singh, the Chief Investment Officer, stated that mid-cap stocks have the potential to outperform larger counterparts during market recoveries. The Bank of India Mid Cap Fund aims to capitalise on this potential by focusing on quality mid-sized enterprises with scalable business models and strong management.
The Bank of India Mid Cap Fund is intended for investors seeking long-term capital appreciation through fundamentally strong mid-cap companies. The NFO for the Bank of India Mid Cap Fund will close on August 14, 2025. Investors interested in the Bank of India Mid Cap Fund are advised to monitor official sources after its operational commencement for detailed portfolio and performance updates.
Meanwhile, other notable events in the equity market include the launch of the Laxmi India Finance IPO in the ₹150-158 price band, and Mangalore Chemicals hitting a 52-week high. Additionally, Q1 results are due today for several companies including L&T, NTPC, Asian Paints, VBL, Star Health, GMR Airports, Blue Dart, and V-Guard.
[1] Bank of India Mid Cap Fund: Key Details and Strategy, The Economic Times, July 30, 2025. [2] Bank of India Large & Mid Cap Fund: Performance and Sector Allocation, Bank of India Mutual Fund Website, June 30, 2025. [3] Top Holdings of Bank of India Large & Mid Cap Fund, Morningstar India, June 30, 2025.
- The Bank of India Mid Cap Fund, launched on July 31, 2025, aims to generate long-term capital appreciation by investing in mid-cap companies.
- The Bank of India Mid Cap Fund invests at least 65% of its assets in equity and equity-related instruments, and may include equity derivatives to balance risk and growth.
- The mid-cap fund focuses on sectors such as Financial Services, Basic Materials, Consumer Cyclical, Industrial, Technology, Health, Energy, Communication, Utilities, Consumer Defensive, and Real Estate.
- The Bank of India Large & Mid Cap Fund, which includes both large and mid caps, has delivered a compounded annual growth rate of 14.55% since inception.
- Alok Singh, the Chief Investment Officer, believes that mid-cap stocks have the potential to outperform larger counterparts during market recoveries.
- Interested investors can subscribe to the Bank of India Mid Cap Fund before August 14, 2025, and can access live updates on the fund's performance through official sources after its operational commencement.
